The principal objective of this research is the systematic integration of health considerations into the analysis of the labor market activity and income security of older males. Disability and the possibility of disability will be integrated into the asset and retirement decisions of the individual. Theoretical models will be developed of (1) retirement and savings over the life cycle when (a) disability does occur and (b) disability does not occur; (2) retirement and savings when both disability and retirement income maintenance programs are present. The disability program is distinguished by a health criterion. The optimal integration of a health-tested program and an age-tested program will be explored. An empirical analysis of retirement in the 62 to 64 age interval that integrates the two incentive systems will also be undertaken with data from the National Longitudinal Surveys. Retirement models for those who escape early disability will also be developed theoretically and empirically. The determinants of industrial demand for older workers will be an important element in this analysis. An analysis of the labor supply of older workers in th U.S. over the period 1900-1980 is also proposed. The objective is to assess the relative importance of the changing composition of (1) the industrial base and (2) income maintenance systems on the secular decline in labor supply of older workers. The final theoretical and empirical models developed will integrate (1) health factors, (2) the disability program, and (3) employer demand into the analysis of retirement. A better understanding of the interactions of health condition, market opportunities, and potential welfare benefits in the decision to retire should provide insight into the responsiveness of older males to economic opportunities and constraints and aid in the development of more efficient income security programs for this group.